Hiren Gada Interview on CNBC. Continue to suggest to grow at higher than industry growth for Traditional media (Industry growth in high single digit) and New Media (industry growth at 30%)moneycontrol.com

Traditional Media:Expect double digit growth in line with Industry projections. Business growth is returning back to normal from a full year perspective. Revival in Ad spends have been reasonably good.

New Media:Industry projections are 30% CAGR growth for the next 3-4 years. We should do better than that, expect to have 40%+ CAGR growth (internal target to grow). Operating leverage will play out but hesitant to factor in any margin improvement at this moment. Does not want to raise high expectations. It’s a seller’s market, lot of demand is there. Demand for content and prices are going up.

YouTube:Ad spend is not in line with views growth. The Ad rate is impacted due to Brand safety hit globally.Growth in revenue is not according to growth in views.

Inventory:Inventory addition 75 Cr this quarter. Some inventory carry forward from previous quarter. We are at end of investment phase now. Expect to have negligible inventory addition from a full year perspective. Inventory additions for next 3 quarters to be low.

Investment strategyWe have decided 4 years back to do an aggressive investment to build a large library from internal accruals, borrowings and equity. We have been making investment of around 100 Crs on an average every year for the last 3-4 years. Now we don’t need to be in an overdrive mode to invest. There will be a continuous need for investment but not at the pace we have had so far.

Debt:Future growth requirements should be funded through internal accruals. We plan to reduce debt, however September number could be slightly higher. Current quarter debt levels are close to March numbers (1-2% higher).

Cash Flows:Expect more FCF going forward than what is needed for investment.

Competition:Balaji-Reliance deal is content play. Prices have gone up for digital content but Growth fully not caught up. Revenue lagged behind the growth but expect to pick up.Amazon Prime buying content but not buying perpetual film rights. Generally 3-5 years deal.

General:We made few Perpetual investments like Jab we met, Golmaal, Golmaal Returns, Bhagam Bhaag, Khattha Meetha, Blue – mostly from Ashtavinayak. 2600 films – Aggregate rights. Could be for more than 5 years. We target IRR 18% when we buy content.Perpetual right is like when we step into the shoes of the producer. We own copyright of the film and become author of the film. Now music labels are retaining Songs video rights. We can monetize entire film or film in parts but not songs alone.New films – Inflation 3x-5x in 3 years. Second/Third cycle where we operate – Inflation doubled in 3 years.If someone explores feasibility to re-make a movie and if we own perpetual rights, then they have to make a deal with us. Did 1-2 such deals in the past but movies were not released. It is at a nascent stage at this moment, the results have been mixedIn non-film content, we have a category called Special Interest with following sub-categories:a. Kidsb. Devotionalc. Health & Fitnessd. Television (classic serials)The sub-category Devotional gives us a good edge as we were able to monetize across digital and traditional media

DTH tie-up:Potential of Ad free/Paid service subscription. Services launched with several players and response has been satisfactorily so far. For an Ad free service, let’s say consumer pays Rs 30-60 per month and this is split three ways:a. Govt taxes/license share (largest component)b. Platformc. Shemaroo (we get 40-50% of what remains after Govt share)This is classified under Traditional Media